I just hung up the phone with Geoffrey Allison of Starker Services, a Qualified Intermediary (QI) that handles 1031 tax deferred exchanges here in the Kansas City area as well as the surrounding areas/states. And of course the failure of Land America’s 1031 Exchange division came up.
What is funny to me is that I’ve had clients with over $100,000 going into a tax deferred exchange and they want to pick and choose their QI based on cost alone. So they don’t use Starker Services and Geoff because they cost an extra $100 or so. (That’s o.oo1 of the price for those of you keeping score.)
Did you know monies in held with a QI are unregulated? Did you know that many QIs do business but very few do business right? Do you know who the hell is responsible for your $100,000 while it’s being held for those 45 days or so?
Listen, today more than ever we see why it’s important to do some checking and to be in business with the right people. I had a guy not too long ago say he wouldn’t pay me a 6% commission (my minimum going rate) that he’d never pay over 5%. Fine. That’s he prerogative and this is America. But I would warn you that basing your entire investment decisions over pennies (comparatively speaking) is short-sighted and amateurish.
Go ahead, use whatever QI for your tax deffered exchange that you like. I’m sticking with my recommendation of Starker Services, Inc. You can click the link to find out more about them. If I was turning over a considerable amount of money I think I’d do that….